Today’s Key Market Drivers – 11th July 2017

The Japanese Yen continued its decline on Monday on the back of comments made by the Bank of Japan Governor Kuroda. The Japanese Central Bank has been printing trillions of Yen and pumping money into the economy in an attempt to get inflation to rise to 2%. The BOJ said on Monday that it intended to keep Japanese bond yields at 0%, which is likely going to keep a lid on the Yen rising particularly against the USD, Euro, Canadian Dollar and Pound. The RBA, RBNZ and BOJ are among 3 major Central Banks that are unlikely to raise official interest rates in the coming 9 to 12 months, unlike the US Fed, ECB, BOC and BOE, which will likely tighten interest rates and keep the general upward pressure on their currencies.

Currency markets were mostly mixed on Monday as traders await a key address by Janet Yellen to the US Congress on Wednesday and the Bank of Canada’s interest rate decision. There is also important CPI data to be released for the US economy on Friday so traders are mostly sitting on their hands at present. The market is continuing to price in the likelihood of the BOC raising rates this month and thus the Canadian Dollar has remained well supported in the past month. Crude Oil prices overnight rose by 0.17c and this will also help support the Caddie leading into the BOC’s decision this week. Oil is as important to Canada as Iron Ore and Coal is to Australia.

Don’t expect the economic calendar to help solve the lacklustre price volatility today with little in the way of high impacting news. Australia gets the latest NAB Business Confidence numbers, which isn’t likely to create over-the-top volatility and the balance of the Asian, European and US trading sessions are free of high impacting news. Perhaps a Tweet or two from President Trump will get things moving.

 

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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